Market News
- Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks. Dow Jones fell 231 points, S&P 500 was down 47 points and Nasdaq Composite lost 160 points.
- Representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government’s $31.4 trillion borrowing limit or risk default.
- Oil prices rose after Saudi oil minister Prince Abdulaziz bin Salman told market speculators on Tuesday they should “watch out,” bolstering fears that there could be future challenges in the market.
Market Views
- Asia-Pacific markets slid on Wednesday morning. Hong Kong’s Hang Seng index fell 1.05% and the Hang Seng Tech index shed 1.16%, dragged by healthcare and industrial stocks. Nikkei 225 slid 1.08% even as the country’s business sentiment among manufacturers turned positive for the first time in 2023.
- The Reserve Bank of New Zealand increased its benchmark policy rate by 25 basis points to 5.5% on Wednesday. This is its 12th straight rate hike since October 2021, and in line with expectations from economists polled by Reuters.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,102
Target price:
Protective stop:
Outlook
Price is trading below the falling 20EMA that hints at potential downside ahead. A violation of the support at 32,912 will target for 32,080. Stochastic remains weak and a bearish crossover is likely. MACD is still bearish and is moving lower.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Short @ 19,840
Last: 19,197
Target price: 18,850
Protective stop: 19,500
Outlook
Price broke below the consolidation zone today with a bearish candle. We would like to see a firm close to confirm the breakdown to 18,810. Stochastic is falling and MACD remains bearish.
Trading Idea.
Sell 19,840 for 18,850 with a stop above 20,000. Entry was filled on 22 May. Shift stop lower to 19,500.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,695
Target price:
Protective stop:
Outlook
Price could have formed a possible price top at 13,923. We think that price is going to have a price correction to 13,460. Stochastic is at the overbought zone for extended period. MACD is still strong and bullish.
Trading Idea
Sell 13,790 with a stop above 13,940 for 13,460.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation: Short @ 7772
Last: 7728
Target price: 7670
Protective stop: 7820
Outlook
Price was resisted by its overhead 20MA resistance point. As long as it moves below the 20MA, we are likely to see price testing 7569. Stochastic remains weak. MACD is still bearish and is moving lower.
Trading Idea
Sell 7772 for 7670 with a stop above 7820. Entry order was filled on 18 May.
